Holiday Pay and Overtime

Fine points of compensation for holidays and overtime. April 13, 2010

Our company does not pay for any holidays off. We can usually work the holiday if we want to at regular pay. My question relates to working a Saturday after a holiday. Would it be customary to pay overtime for this day even if we are short of 40 hours due to the holiday off, whether the holiday was actually worked or not?

Forum Responses
(Business and Management Forum)
From contributor S:
If you haven't worked 40 hours for the week, Saturday is just straight time. If you were paid for the holiday and still worked Saturday, that is still straight time. Your paycheck would show 40 hours straight pay and 8 hours holiday pay. I don't think any company will figure in holiday time with overtime. There; is it clear as mud yet?

From contributor G:
I would think anything over your normal scheduled work week would be considered overtime regardless of how it's paid out. But, being union and in the northeast, of course I think this way. I could be wrong; other sections of the country may follow different guidelines.

From contributor K:
Unless your company has a policy regarding overtime for Saturday pay, why would you expect to be paid overtime when you haven't hit 40 hours? You said they look at the holidays like any other day, and if you choose to take it off, and work Saturday, how does overtime kick in?

From contributor E:
There is no "customary" regarding this issue in the industry. The issue would be up to the state wages and hours laws. If you actually want to pursue it, call or check online your state's office that handles employment issues, or look your state's law up. The advice given above is going to be correct most places, unless your state has some twist.

From contributor B:
Unfortunately this isn't the place to get the right answer to your question. It is a labor law question, which varies based on where you are. Here in Alberta, your employer would be violating the labor code by not paying you for the holiday. If you work it, the pay rate is overtime. However, if you don't work the holiday, you don't generate any hours towards overtime rates. Which here are more than 8 hours in a day and more than 44 hours in a week, so on a Saturday I don't get OT until I've worked four hours. I guess what it boils down to is, if your boss is screwing you a bit with holiday pay, are you willing to let him? I firmly believe in employee rights, but personally I don't mind taking a bit less than I am entitled to if it helps the company survive in turbulent times.

From contributor W:
Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay.

The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days. Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee's representative). The FLSA does not require extra pay for weekend or night work or double time pay.

The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). These benefits are generally a matter of agreement between an employer and an employee (or the employee's representative).